The last few years have brought us unprecedented challenges - inflation, expensive credit card debt, and now, the reality of student loans is setting back in. After a pause of more than three years, federal student loan payments are set to resume next month. To add to the concerns, the proposed forgiveness of up to $20,000 in student loan debt by the Biden administration is facing the threat of being overturned.

Despite these challenges, it's crucial to remember not to panic. Take a deep breath. We're here to help you navigate through this.

Get Your Student Loan Debt Organized

Before you can build a solid plan, you need to simply reacquaint yourself with that student loan debt most of us forgot about:

1. Get in Touch with Your Loan Servicer: Check who your current loan servicer is. Remember, many loan servicing contracts have ended since February 2020, and your loans may have been moved to a new servicer. Use the Federal Student Aid website to find out who is currently managing your loans.
2. Understand Your Status: What will your monthly loan payment be? If your loans are in default, you need to take steps to restore them to good standing, possibly through the Fresh Start program. If you're working in public service, ensure you're maximizing the benefits of the Public Service Loan Forgiveness (PSLF) program.
3. Update Your Contact and Payment Information: It's crucial for your loan servicer to have your current contact details - phone number, email, and physical address. This will ensure you receive all necessary communications and updates regarding your student loans. In addition, consider setting up autopay with your loan servicer when payments resume. Autopay will help you avoid missed payments.

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Revisit Your Overall Financial Plan

Now that you understand your student loan debt and what may be needed again in terms of payments, it may be time to revisit your financial life more holistically:

1. Reassess Family Priorities: Evaluate your financial priorities and how they may have changed in light of recent events. Do you now have a new baby, getting married, or experiencing a new life event? If so, you have to factor in these changes to your plan
2. Review Your Budget: How much is left over every month? Do you have to consider cutting some expenses? What other expenses are coming up?
3. Find Extra Cash: If you are short on cash, what are other ways to generate more income for debt payments? Does it make sense to consider a new job? What are other savings hacks you can deploy to make this work?
4. Automate Payments: The secret to an incredible plan is automating everything. Even the best of us have trouble being disciplined every month. Take the "human" out of it, and set-and-forget everything where possible.

In these tough times, it's essential to stay resilient and proactive. We're here to assist and support you in every step of your financial journey.

If you need help navigating your student loan debt, along with other financial concerns that you may have, the Budge team is here to help you. Schedule a free Discovery Call with John O'Connell: Schedule Discovery Call

Stay strong, and remember that every challenge brings opportunities for growth and learning.